Oman Leads the Way in Green Hydrogen with First Major Offtake Agreement

Oman Leads the Way in Green Hydrogen with First Major Offtake Agreement

Image Source: Asia Pathways

A significant milestone has been reached in the green hydrogen industry with the signing of the first major offtake agreement between non-affiliated companies. This deal cements Oman’s position at the forefront of green hydrogen development.

Key Points:

  • Agreement Details: Yara, a Norwegian company, signed a long-term contract with ACME Cleantech (India) to purchase 100,000 tonnes of green ammonia annually starting in 2027.
  • Project Location: The green ammonia plant will be built on a 12 sq. km site in Duqm’s Special Economic Zone (SEZAD).
  • Project Timeline: Construction is underway with Phase 1 focused on meeting Yara’s offtake needs. Future expansion plans are in place.
  • Project Features: The facility will encompass a fully integrated system including solar and wind power generation, electrolysis for hydrogen production, ammonia synthesis, and dedicated infrastructure for exporting ammonia.
  • Certification Challenges: The evolving nature of green hydrogen certification standards across regions like Europe and Asia presents a challenge for project developers like ACME. The company is working with certification bodies to advocate for standardized methods.
  • Oman’s Role: The Omani government, through Hydrom (its green hydrogen agency), has facilitated project development by providing land, pre-certification frameworks, and overseeing legacy agreements.

Oman’s Competitive Advantage:

  • This agreement showcases Oman’s strategic location for exporting green hydrogen derivatives like ammonia to Europe and Asia.
  • The presence of established companies like ACME and DEME Concessions, partnering with Omani entities, further strengthens Oman’s position in the green hydrogen race.

Looking Ahead:

With this landmark agreement and ongoing project development through Hydrom’s initiatives, Oman is well-positioned to become a major player in the global green hydrogen market. Standardized certification methods and wider market demand for green hydrogen will be crucial for continued success.

First Mover Know-How: ACME Leads the Charge in Green Hydrogen

Ashwani Dudeja’s extensive experience in the energy sector, coupled with ACME’s bold approach, has positioned the company as a frontrunner in the green hydrogen revolution.

Taking the Lead:

Dudeja’s background in gas, LNG, and power (including stints at BG Group, Shell, and ADNOC) provided valuable insights for navigating the green ammonia market.
Recognizing the importance of long-term contracts for project financing in a new field, ACME wasn’t afraid to take on risk and negotiate a groundbreaking agreement with Yara.
Learning by Doing:

ACME’s pilot plant in Bikaner, India, provided crucial operational knowledge for integrating hydrogen and ammonia production with renewable energy sources.
This pilot, despite not generating commercial returns, served as a valuable learning tool for operating electrolyzers and managing the entire production chain.
Building a Strong Foundation:

ACME’s experience as a renewable energy developer (over 8 GWp built/under construction in India) is a major advantage in a sector where renewable power is a significant cost factor.
Established relationships with technology providers allow for efficient procurement across projects.
Beyond Oman:

ACME’s ambition extends beyond Oman, with plans for a 400,000-tonne green ammonia project in Odisha, India, backed by government incentives and a partnership with IHI Corp. of Japan.
Exploring electrolyser manufacturing for the Odisha project demonstrates ACME’s commitment to vertical integration.
The company is also pursuing opportunities in the US (Port of Victoria, Texas) and Europe (H2Global tender).
A Disruptive Force:

Founded with a spirit of innovation, ACME isn’t afraid to challenge the status quo. They are actively moving forward while others may be hesitant.
Conclusion:

ACME’s first-mover mentality, combined with its experience and strategic planning, positions the company as a key player in shaping the future of green hydrogen. Their disruptive approach and commitment to learning by doing will be crucial for success in this rapidly evolving industry.

 

Source: Alan Mammoser for Oilprice
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Electrical and Solar Engineer - Bachelor of Electrical Engineering, Power and Electrical Machinery Department, Faculty of Engineering, Sana'a University, 2019. Content Management Officer, Editor, and Writer at the Arab Renewable Energy Academy (ARABRENA) platform. Also, Content Management Officer at the Majan Center for Renewable Energy and Energy Efficiency (MCREEE).

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